JPMorgan Chase Shares Fall After Reporting Smallest Quarterly Earnings Beat

Jan 14, 2022 By MarketDepth

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JPMorgan Chase (NYSE: JPM) shares fell Friday after the company reported its smallest quarterly earnings beat in approximately two years. Consequently, the bank’s CFO Jeremy Barnum lowered guidance on company-wide returns. Though the bank benefited from busy capital markets, it also experienced higher expenses and a decrease in trading activity.

Higher Than Antipiated Revenue

The multinational investment bank posted earnings of USD3.33 per share, compared to the expected &USD3.01 a share. Revenue amounted to USD30.35 Billion, higher than analysts anticipated USD29.9 Billion.

“JPMorganChase reported solid results across our businesses benefiting from elevated capital markets activity and a pick up in lending activity as firmwide average loans were up 6%.”

Jamie Dimon, the bank’s chairman and CEO

Shares plummeted 5.2% during early morning trading. According to the company’s release, it took a USD1.8 Billion net benefit from releasing reserves for loan losses which were never realized.

Headwinds Expected

“Over the next one to two years, we expect to earn modestly below that target as the headwinds likely exceed the tailwinds,” Barnum said, adding that the goal is still valid over the “medium term.”

Shares Up for the Year

JPMorgan shares have risen 6.2% throughout the year and have a market cap of USD472.37 Billion.